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Food brands sell less nutritious products in lower-income countries, report reveals

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Food brands sell less nutritious products in lower-income countries, report reveals

Global food giants offer healthier options in wealthy nations but sell less nutritious products in lower-income countries, a recent report reveals.

Report alleges Nestle, Pepsico, Unilever to dump items in poorer countries

According to Reuters, a recent report from the Access to Nutrition Initiative (ATNI) evaluated products from companies like Nestle, Pepsico, and Unilever. It found that, among 30 companies, products sold in low-income countries were less healthy, scoring lower on a rating system from Australia and New Zealand, compared to those sold in high-income countries. This is ATNI’s first report since 2021.

Continue Exploring: Day 2: Swiggy’s IPO continues to receive lukewarm response with only 35% subscription

Notably, the Health Star Rating system reveals a concerning disparity in the nutritional quality of products sold by multinational food companies. In low-income countries, their products received a dismal rating of 1.8 out of 5, whereas in high-income countries, the rating was 2.3. This difference highlights the unequal access to healthy food options, with poorer countries facing limited availability of nutritious products.

While talking to Reuters, Mark Wijne, research director at ATNI said, “It’s a very clear picture that what these companies are selling in the poorest countries in the world, where they are more and more active, are not their healthier products.” He added, “It’s a wake-up call for governments in these countries to be vigilant.”

70% of Global Obesity in Low and Middle-Income Countries: World Bank

This is the first time the index has assessed low and high-income countries separately. ATNI stated the index is crucial because packaged foods contribute to the global obesity crisis. According to the World Health Organization, over one billion people worldwide are obese. The World Bank estimates that 70% of overweight or obese people live in low-and-middle-income countries.

Continue Exploring: ED raids sellers linked to e-commerce giants Amazon and Flipkart 

Meanwhile, Nestle released a statement saying, “We have committed to grow our sales of more nutritious foods, as well as guiding people towards more balanced diets.” The spokesperson added that Nestle also fortifies products to help close nutrient gaps in developing countries. 

Regarding the report, Pepsico chose to not speak yet. Last year, the company set new goals to lower sodium in its potato chips and add ingredients like whole grains to its foods.

Furthermore, Isabelle Esser, Danone‘s chief research, quality, and food safety officer, said, “We acknowledge that there is always more to do, both at a business and industry level.” Danone was the top performer in the index.

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Day 2: Swiggy’s IPO continues to receive lukewarm response with only 35% subscription

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Day 2: Swiggy's IPO continues to receive lukewarm response with only 35% subscription

Swiggy‘s INR 11,324 crore IPO saw a slow response on the second day persistently, with only 35% of the shares being subscribed. Bombay Stock Exchange (BSE) data shows that investors bid for 5.57 crore shares out of the 16.01 crore shares available.

Retail investors subscribes 84%, employee portion at 1.15x

By the end of Day 1, retail investors had subscribed to 84% of their allotted shares. The employee portion was oversubscribed at 1.15 times. Non-institutional investors bid for 59.14 lakh shares out of the 4.34 crore shares available, resulting in a 14% subscription.

Continue Exploring: Swiggy’s IPO receives 11% subscription on opening day, sluggish start

According to INC42, in the meantime, InCred Equities gave the Swiggy IPO a ‘Subscribe’ rating. They said, “We recommend subscribing to the IPO as favourable scale and long-term opportunities in quick commerce provide growth runaway while the food delivery vertical has the potential to improve the margin and cash flow going ahead.”

Earlier on day 1st, Swiggy had a weak start on Wednesday, November 6, with only 12% of shares subscribed. On November 5, Swiggy raised INR 5,085 crore from anchor investors.

Swiggy’s price per shares lies between INR 371 to INR 390

Notably, the food delivery platform has set a price range of INR 371 to INR 390 per share for its public offering. At the high end, the company plans to raise INR 11,324 crore. The fresh issue part of the IPO has been increased to INR 4,999 crore, while the offer for sale (OFS) part has been slightly reduced to 17.5 crore shares.

Continue Exploring: Swiggy secures INR 5,085 Cr before IPO, issues 13.03 Cr shares

Meanwhile, Swiggy’s initial public offering (IPO) is set to launch on November 13 on the BSE & NSE, aiming for an $11.3 billion valuation. Early investors Accel India and Elevation Capital are expected to earn impressive returns, more than 34 times their initial investment, by selling some of their shares.

Furthermore, the food tech giant’s financial performance for the first quarter of FY2024-25 showed mixed results. The company’s operating revenue grew 35% year-on-year to ₹3,222.2 crore, indicating strong growth. However, its consolidated net loss also increased by 8% to ₹611 crore during the same period.

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ED raids sellers linked to e-commerce giants Amazon and Flipkart 

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ED raids sellers linked to e-commerce giants Amazon and Flipkart 

India’s Enforcement Directorate (ED) conducted surprise raids on Thursday, November 7 at offices of sellers linked to Amazon and Flipkart, amid growing scrutiny of e-commerce platforms.

Amazon & Flipkart sellers under radar due to violation of act

According to Reuters, the search operations were linked to a probe into alleged violations of the Foreign Exchange Management Act (FEMA). The raids took place at the offices of select sellers in New Delhi, Mumbai, and Bengaluru, as reported by ED officials. News agency PTI also reported that the raids were conducted in Gurugram and Hyderabad.

Continue Exploring: Emami revenue grows by 3%, reports strong quarter

While talking to ET, a government official stated, “The raids on sellers of Amazon and Flipkart is a part of ED’s probe … for alleged violations of foreign exchange laws.” The ED has increased scrutiny on Amazon and Flipkart due to financial transactions made by “preferred” vendors and sellers on their platforms.

CCI instructs Amazon & Flipkart to submit Q2 results

This development follows reports from months ago stating that the Competition Commission of India (CCI) found Amazon and Flipkart violated competition laws by favouring select sellers on their platforms. The antitrust watchdog then instructed the companies to submit their recent financial statements to determine the penalties to be imposed.

Continue Exploring: Swiggy’s IPO receives 11% subscription on opening day, sluggish start

Notably, the Indian government is under pressure to regulate e-commerce platforms, particularly Amazon and Flipkart, due to concerns about unfair business practices. Recently, Praveen Khandelwal of the Confederation of All India Traders (CAIT) urged the government to suspend these platforms’ operations, citing harm to India’s manufacturing sector. He’s pushing for stricter rules to ensure fair competition and prevent monopolies.

Regardless of regulatory pressure, Amazon and Flipkart continue to grow in India’s e-commerce market. Recently, Amazon’s Great Indian Festival 2024 saw 140 crore customer visits, while Flipkart recorded 720 crore engagements during the festive season.

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Lite Bite Foods launches Pan-Asian YOÜMEE outlet at Dwarka

Lite Bite Foods launches Pan-Asian YOÜMEE outlet at Dwarka
Lite Bite Foods launches Pan-Asian YOÜMEE outlet at Dwarka

Lite Bite Foods has opened its 23rd YOÜMEE outlet at Vegas Mall in Dwarka, marking the brand’s exciting entry into the city centre.

According to ET Hospitality, Rohit Aggarwal, co-founder and managing director of Lite Bite Foods, released a statement regarding the launch, saying “We are thrilled to welcome YOÜMEE to Dwarka! Our mission has always been to provide accessible, high-quality Pan Asian cuisine in innovative ways. With this new outlet, we aspire to become the go-to dining destination for the residents of Dwarka, seamlessly blending art, food, and culture.”

Continue Exploring: The Hosteller secures INR 48 Cr from V3 Ventures for expansion

YOÜMEE serves south asian cuisine

Inspired by manga, YOÜMEE is a Pan-Asian restaurant that takes diners on a thrilling food adventure. Its new location offers a diverse and immersive experience, showcasing the bold flavours of Asia. The menu is a vibrant tapestry of flavours, featuring delicate dim sums, expertly crafted sushi, vibrant noodle dishes, and many more Asian favourites. With something for every taste, YOÜMEE brings the authentic flavours of Asia to the table.

YOÜMEE’s interior is inspired by Japanese Manga comics, creating a fun and stylish atmosphere. Colourful illustrations of popular Manga characters add a modern touch, making dining a visual treat. The restaurant’s comfortable design makes it perfect for family gatherings, casual meetups, or solo meals.

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CakeZone announces actress Palak Tiwari as new ambassador

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CakeZone announces actress Palak Tiwari as new ambassador: pic credit|| businessoffood

CakeZone, a leading dessert brand from the House of Curefoods, has announced the appointment of popular actress Palak Tiwari as its official brand ambassador for the next year.

CakeZone to foster brand value in Gen Z via Palak Tiwari

Palak Tiwari’s partnership with CakeZone is happening at an exciting time, as the brand aims to connect more with young people who value quality and creativity in their celebrations. Known for her engaging personality and strong appeal to Gen Z, Palak is the perfect ambassador to showcase CakeZone’s innovation in desserts. Together, they aim to bring joy to celebrations across the country, creating lasting sweet moments.

Continue Exploring: Pernia’s Pop-Up Shop to raise INR 250 Cr for expansion ahead of IPO

According to India Retailing, Palak released a statement regarding, “I am thrilled to be part of the CakeZone family! Their commitment to blending tradition with modernity perfectly aligns with my own values. These festive hampers are a way to share love and joy with our loved ones during this beautiful festival.”

Meanwhile, CakeZone invites everyone to check out its special festive hampers during festive days, designed to enhance the spirit of celebration. The brand focuses on honouring love, joy, and togetherness with these curated offerings.

CakeZone operates in 35 cities across India

Furthermore, Ankit Nagori, Founder, Curefoods, commented, “We are excited to have Palak Tiwari on board as our brand ambassador. Her vibrant personality and connection with the new generation resonate perfectly with our vision. Our festive hampers are designed to make every celebration special, and we believe that with Palak’s influence, we can inspire more people to celebrate with meaningful gifts.”

Continue Exploring: Delhi HC bars Alpino from negative Oats ads following Marico lawsuit

Established in 2016 in Bangalore, CakeZone is a cloud-kitchen dessert brand currently operating in 35 cities with over 160 cloud kitchens. The brand plans to expand to other important cities soon and aims to become a national dessert brand.

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Emami revenue grows by 3%, reports strong quarter

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Emami revenue grows by 3%, reports strong quarter

Emami Limited‘s Board reviewed its financial results for the quarter ending September 30, 2024. Despite India’s retail challenges, Emami’s revenue grew 3% to INR 891 crore, with domestic sales up 2.6%.

EBITDA at 7%, PAT to INR 220 Cr

Furthermore, the fmcg brand reported a strong quarter, with gross margins increasing by 0.6% to 70.7%. The company’s EBITDA rose 7% to INR 250 crore, while EBITDA margins expanded by 1.1% to 28.1%. Profit Before Tax grew 13% to INR 220 crore, with a 2.2% margin improvement. Additionally, Profit After Tax surged 19% to INR 213 crore, demonstrating Emami’s robust financial performance.

Continue Exploring: Protinex team up with Apollo Health on World Diabetes Day for free diagnosis offer

According to India Retailing, Harsha V Agarwal, Vice Chairman and MD of Emami commented, “We are pleased to close the first half of the year with strong performance, achieving 6 percent revenue growth, 10 percent EBITDA growth, and a 16 percent profit increase despite macroeconomic challenges. For H2 FY25, we expect stronger offtakes driven by improved rural demand and stable seasons ahead.”

Emami grows 12% globally, 6% in Q2 FY25

Emami’s international sales grew 12% (excluding Bangladesh) and 6% overall for Q2FY25.

Despite global challenges, Emami’s international business saw strong growth, with sales up by double digits excluding Bangladesh. According to Agarwal, new products and strategic investments will drive double-digit revenue growth in the second half of the year.

Continue Exploring: KL Rahul-backed fitness brand Boldfit secures INR 110 Cr from Bessemer Partners

Notably, Emami’s key brands, like Navratna and Dermicool, as well as their healthcare and pain management products, experienced steady growth. In the second quarter of FY25, Emami introduced 11 new products to enhance their offerings. These new items include DermiCool Sweat Reliever Super Active Talc, Ice Cool Shower Gel, and various personal care products such as De-Tan and Deep Cleansing Face Wash, Style Lock Shampoo, Fresh Impact Body Wash, and two EDT perfumes under the ‘HE’ brand.

Adding to Emami’s performance, Mohan Goenka, Vice Chairman and Whole-Time Director, stated, “Organised channels like Modern Trade, e-Commerce, and Institutional sales now contribute 26.6 percent to our domestic business, a 190-basis point increase in the first half. We remain committed to achieving high single-digit revenue growth and double-digit EBITDA growth for FY25.”

Meanwhile, Emami’s healthcare segment expanded with new products on the Zanducare portal, including daily health supplements and hair growth serum. BoroPlus Soft cream was also relaunched with new packaging. 

Moving forward, Emami plans to revamp its Fair and Handsome brand and prioritise Kesh King to solidify its market position. With a promising winter outlook, the company anticipates a strong showing from its winter product lineup.

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Protinex team up with Apollo Health on World Diabetes Day for free diagnosis offer

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Protinex team up with Apollo Health on World Diabetes Day for free diagnosis offer

In an effort to improve diabetes management and promote early testing, Protinex Diabetes Care has partnered with Apollo Health Co (Apollo 24|7). To celebrate World Diabetes Day, they are offering a free HbA1c test with every purchase of a Protinex Diabetes Care pack.

HbA1c test with Protinex Diabetes Care packProtineX

This collaboration aims to raise awareness about diabetes care and the importance of regular testing for long-term blood sugar management. The HbA1c test, considered the gold standard for monitoring glucose levels over the past two to three months, can be scheduled with a home collection appointment through Apollo 24|7. The offer is available until November 30, according to Indian Retailing.

Continue Exploring: Godrej refuses to cut palm oil content despite Unilever’s move

With over 101 million Indians living with diabetes (11.4% of the population) according to ICMR study, this new initiative encourages individuals to regularly check their blood glucose levels and take control of their health. Proper management and lifestyle changes can significantly improve quality of life for those with diabetes.

Meanwhile, Sriram Padmanabhan, Marketing Director, Danone India released a statement, saying, “The right nutrition is crucial in the battle against diabetes. It’s not just about managing blood sugar levels but also about early diagnosis and management. This World Diabetes Day, we are proud to collaborate with Apollo Health Co (Apollo 24|7) to empower individuals in their diabetes management journey. By offering a complimentary HbA1c test, we hope to remove some of the barriers that prevent individuals from regularly monitoring their health. Through this synergy, we are dedicated to raising awareness about the benefits of protein and fibre in managing diabetes and making a meaningful impact on diabetes care in India.” 

Protinex at Apollo retail stores and online platforms

Notably, Protinex Diabetes Care offers a formula designed to support blood sugar control, enriched with essential nutrients and 11 immuno-nutrients to boost immunity. The Low GI formula and high fibre content also help reduce cholesterol. Through this partnership, Protinex highlights the importance of early diabetes diagnosis and effective management.

Continue Exploring: Swiggy Instamart’s Karthik Gurumurthy debuts cricket activewear brand Ten X You

Furthermore, Madhava Krishna (VP – Category) from Apollo Health Co (Apollo 24|7) stated, “Our partnership with Protinex Diabetes Care aligns perfectly with this vision by making essential diabetes testing widely available. Protein and fibre play crucial roles in diabetes management, helping regulate blood sugar and maintain sustained energy. By incorporating these nutrients in diet alongside regular health checks, we aim to support individuals in taking meaningful steps toward managing their health. Together, we hope to create greater awareness and make diabetes care more accessible for all.”

Besides the HbA1c test offer, Protinex Diabetes Care will be highly visible in Apollo retail stores and online platforms. The goal is to reach many consumers and educate them on the importance of early diabetes diagnosis and management. Apollo will also provide a dedicated toll number for inquiries, making it easier for people to get information on testing and other health services.

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FirstCry’s parent Brainbees Solutions’ shares Drop 5% following GST investigation

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FirstCry’s parent Brainbees Solutions’ shares Drop 5% following GST investigation

FirstCry‘s parent company, Brainbees Solutions, saw its shares drop over 5% after the Mumbai GST department launched an investigation into its tax practices.

Brainbees Solutions’ shares at INR 592.85

By 3 PM, Brainbees Solutions‘ shares were trading at INR 592.85 each, down 5.26% from the previous day. The company confirmed that Mumbai state tax officials searched and inspected its Pune headquarters and a warehouse in Bhamboli, Maharashtra, on November 6.

Continue Exploring: Middle east war slows McDonald’s growth, sales drop to half of pre-crisis levels

Meanwhile, the company said the investigation was done under sections 67(1) and 67(2) of the Maharashtra GST Act, 2017. Brainbees assured investors that they are fully cooperating with the GST authorities and providing all necessary clarifications. They also mentioned that the company’s operations are not affected by the ongoing probe.

FirstCry debuts on BSE, NSE in August 2024

According to INC42, the brand released a statement regarding the investigation, saying, “We would like to emphasise that the company has always maintained high standards of integrity, corporate governance, and compliance in all aspects of its operations, including the prompt payment of applicable taxes. We remain committed to upholding these standards.”

Further, the income tax department sent notices to the company earlier this year, questioning expenses of ₹79.7 crore related to employee stock options for the years 2018-2022.

Continue Exploring: Swiggy’s IPO receives 11% subscription on opening day, sluggish start

Started in 2010 by Supam Maheshwari and Amitava Saha, FirstCry is a marketplace for baby and kids products, operating both online and in physical stores. In August this year, it was listed on the BSE and NSE, debuting at a 34% and 40% premium respectively.

In the first quarter of FY 2024-25 (Q1 FY25), Brainbees Solutions reduced its consolidated net loss by 31% to INR 75.68 crore from INR 110.42 crore in the same period last year. The company’s operating revenue increased by 10% to INR 1,652.07 crore, compared to INR 1,496.93 crore in Q1 FY24.

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Middle east war slows McDonald’s growth, sales drop to half of pre-crisis levels

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Middle east war slows McDonald’s growth, sales drop to half of pre-crisis levels

Geopolitical tensions in West Asia have impacted McDonald‘s operations in West and South India, with some outlets struggling to achieve half their pre-crisis sales. Saurabh Kalra, managing director of Westlife Foodworld, discussed this issue during a post-earnings analyst call for the July-September period.

QSR Chains struggle with quarterly profits 

According to ET, Kalra stated, “I don’t think a lot of stores which got impacted last year have come up to the level of what they were pre-crisis,” in response to analyst queries about the ongoing war in the Middle East.

Continue Exploring: The Hosteller secures INR 48 Cr from V3 Ventures for expansion

Meanwhile, the situation in India arises when quick service restaurant chains like Sapphire Foods, Devyani International (operating Pizza Hut and KFC), Westlife Foodworld, Burger King, and Domino’s are facing challenges with quarterly profits and same-store sales due to increased local competition and rising food prices.

Notably, the Israel-Gaza war has negatively impacted American brands like Coca-Cola, Burger King, McDonald’s, and Starbucks globally, particularly in Asia and the Middle East, due to boycott calls and anti-American sentiment over claims that these brands support Israel’s war efforts. Kalra mentioned, “There was a part of the stores which were impacted. They are marginally better off but still largely remain impacted. And I can quote a few examples of Mumbai Central, Mazgaon where what we used to do, we are not even doing half of what we used to do. So, it remains tough in some of those belts.”

Westlife Foodworld registers loss to INR 35.7 lakh in Q2

Furthermore, Westlife Foodworld reported a significant 98.4% drop in profit to INR 35.7 lakh for the September quarter. Same-store sales growth also fell by 6.5%, due to “subdued in-store business,” according to the company’s earnings statement.

Continue Exploring: ProV registers INR 4.86 Cr PAT, revenue surges 47% YoY in H1 FY25

When asked about the chain’s recovery, Kalra explained, “We have built a lot of good momentum and we believe the negative cycle should be behind us and we should be able to do a better job in H2. We believe we are poised if the consumption trends come back; we are poised to be able to create the results which normally you would expect from us.”

In a September 4 report by the Reuters, Coca-Cola and PepsiCo are facing declining sales in countries like Egypt and Pakistan, largely due to consumer boycotts sparked by the Israel-Gaza conflict.

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The Hosteller secures INR 48 Cr from V3 Ventures for expansion

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The Hosteller secures INR 48 Cr from V3 Ventures for expansion

The Hosteller, a popular backpacker hostel chain, has secured INR 48 crore in funding. The investment is a combination of equity and debt, with INR 16 crore coming from Blacksoil as debt and the remainder from V3 Ventures.

Notably, the funding round also included investments from Synergy Capital Partners, Unit-e Consulting LLP, Real Time Angel Fund (Climber Capital), Ice VC, and angel investors such as Harsh Shah from Naman Group Family Office and Vedang Patel, founder of The Souled Store.

Continue Exploring: Zero-commission app WAAYU expands food delivery to Hyderabad

The Hosteller to expand up to 10,000 beds in 15-18 months

While talking to ET, founder Pranav Dangi said, “We’ve just raised a round of funds which will be utilised to go from 2,500 beds today to 10,000 beds in the next 15 to 18 months.” Meanwhile, the investments will be used for expansion of The Hosteller across India.

Further, he stated that 90% of the funding will be used for expanding properties, while the remaining 10% will be for acquiring customers.

Continue Exploring: Pernia’s Pop-Up Shop to raise INR 250 Cr for expansion ahead of IPO

Established in 2014, The Hosteller runs 60 locations across India, including major cities and scenic spots in Himachal Pradesh, Uttarakhand, Karnataka, and more. It aims to expand into new areas like Odisha, West Bengal, and the northeast, while strengthening its presence in current tier-1 cities such as Delhi, Mumbai, Bangalore, Goa, and Jaipur.

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